Robinhood’s 3 percent fiasco

Investing app Robinhood last month announced plans to offer checking accounts with 3 percent interest, said Jacob Passy in Market Watch.com, but hit a “regulatory stop sign” with a “clumsy rollout.” Robinhood’s new program was designed to function much like a traditional checking plan, complete with a MasterCard debit card that would allow ATM withdrawals. However, the company had to stop the rollout to its 5 million customers when regulators said the money wouldn’t be insured by the government. The 3 percent interest rate was a big draw. “Comparatively, the highest interest rate for savings accounts currently on offer from banks is 2.36 percent.” Even though the Robinhood plan is on hold, many online investment firms are starting to introduce savings account–like products. Betterment’s “Smart Saver” portfolio offers a 2.09 percent annual yield. You can expect more options to come—though maybe not with Robinhood’s headline-grabbing 3 percent claim. stuff with the intention of keeping just one or two items, and retailers frequently foot the bill for the return shipping.” One thing they’ve found, though, is that shoppers often won’t bother to return lower-priced items—and they use that knowledge to set prices. “If a blouse costs $40 or $45, and it’s not a perfect fit or exactly to your taste, you’re going to want your money back.” But “maybe at $32, returning it isn’t worth the hassle.”